Question

In: Economics

Should there be repercussions to individuals and/or businesses for posting false reviews of products or services?

Should there be repercussions to individuals and/or businesses for posting false reviews of products or services?

Solutions

Expert Solution

Companies may implant fake reviews to influence consumers to buy their products. They may emphasize the advantages of their own product or criticize the product or service of the competition. Furthermore, certain systems in search engine optimization would rate businesses higher if they have more favorable feedback. Therefore, adding more favorable comments will help counteract unfavorable feedback and slant the product or service's star or numerical ranking.Degrading the competitor is a more malevolent reason for fake reviews. Through posing as a former competitor 's client, the analysis may seem more plausible than any derogatory comments made by the itsel organization

Issues involving false comments are treated mainly by the enforcement of state laws or common law at the state level. In a related way, state attorney generals or people will help spearhead lawsuits against businesses that the attorney general believes using false web reviews. False claims for advertising may arise if the conduct of the company meets the elements of the torture in the jurisdiction applicable. Another state tort that may apply is when fake reviews are used to discredit a competitor's products or services. In that context, defamation suits may arise. At the federal level, the FTC is in charge of these matters

Such conduct may be governed by the FTC or a similar governmental entity for companies doing business in other countries. Where a business is caught in violation of applicable laws, rules or regulations, the FTC may have the power to impose substantial fines.
In addition to other specific State regulations, the existing rules of professional conduct also regulate attorney ads. Advertisements from lawyers may have to include certain disclaimers in the advertisement regarding their services and the content.


Related Solutions

“Resource are the goods and services available to individuals and businesses used to produce goods and...
“Resource are the goods and services available to individuals and businesses used to produce goods and services.” List and discuss any four types of resource allocation method.       
Business involves the interaction of individuals and individual organizations for the exchange of products, services, and...
Business involves the interaction of individuals and individual organizations for the exchange of products, services, and capital through markets. The global capital markets are critical for the conduct of this exchange. The authors suggest that one way to characterize the global financial marketplace is through its assets, institutions, and linkages. Explain how each of the three dimensions characterize the global financial marketplace?
The Situation: Certified Public Accountants (CPA’s) provide valuable services for their clients, both businesses and individuals....
The Situation: Certified Public Accountants (CPA’s) provide valuable services for their clients, both businesses and individuals. Although it’s important to make client’s happy, accountants have additional considerations when preparing financial statements and tax returns. The Dilemma Aaron Ault, is the owner of a small contracting business. In late January 2016, he delivered original expense and income records so that his CPA Katrina Belinski could prepare 2015 financial statements and tax returns for Ault’s small business firm. Several weeks later, Katrina...
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and...
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs, delivered in a responsible and sustainable way. Being able to have access to a transaction account is a first step towards broader financial inclusion since a transaction account allows people to store money, and send and receive payments. A transaction account can also serve as a gateway to other financial services, which is why ensuring that people worldwide can...
Cost and Pricing - Many businesses are offering their products and services over the Internet. Find...
Cost and Pricing - Many businesses are offering their products and services over the Internet. Find well known company and, determine the following: A product (or service) description A product price Based on your responses to parts (1) and (2), along with the description of the company's business, identify the potential costs that are required to provide the product selected in part (1) and categorize them as fixed or variable. Which product do you believe has the largest contribution margin...
Why should you separate performance reviews from pay reviews? The two activities are not compatible. The...
Why should you separate performance reviews from pay reviews? The two activities are not compatible. The supervisor is a coach in a pay review. A 360-degree feedback process may be part of a pay review. Performance reviews may be viewed as positive for the individual if not tied to pay. Pay reviews should be more carefully structured. The supervisor is a judge in a performance review.
For the following job description please create a job posting. The job posting should have the...
For the following job description please create a job posting. The job posting should have the following information (Marks assigned in brackets, 10 total): Description about the company (create a description of a company that would apply to this job description) (2) Description of the role and the core duties as listed in the job description (3) Description of the qualifications of the candidate (3) Description of the correct way to apply to the role and any instructions relevant to...
“A differentiation strategy is oriented to high quality products or services”. True or false? Explain.
“A differentiation strategy is oriented to high quality products or services”. True or false? Explain.
Discuss the effect on stock market investor confidence should bank customers, individuals and businesses alike, lose...
Discuss the effect on stock market investor confidence should bank customers, individuals and businesses alike, lose access to savings and undergo a loss of future purchasing power due to a bank failure.
True or False 1.) overhead costs are indirectly relates to products and services 2.) The amount...
True or False 1.) overhead costs are indirectly relates to products and services 2.) The amount of over-or under applied overhead is calculates as the difference between the actual activites miltiplied by the predetermined overhead rate and the actual amount of overhead incurred 3.) The cost of a product or service is the sum of the actual amounts of material labor and overhead costs. 4.) The rate used ti apply overhead to production is calculated before the actual amounts needed...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT